NAICOM seeks out of court settlement on stamp duties charges

 
Chuks Udo Okonta
The National Insurance Commission (NAICOM) is seeking out of court settlement on the controversy over the stamp duties charges paid by insurers in the last recapitalisation, by, Inspen has learnt.

Director-General Nigerian Insurers Association (NIA) Sunday Thomas, who disclosed this, said the Commissioner for Insurance Fola Daniel, intervention came after the legal firm Bayo Osipitan & Co. has commenced filing of appropriate court processes at the Tax Appeal Tribunal.

He said: "In pursuant of the recovery of the overpaid stamp duty by member companies during the last recapitalisation, the firm of Bayo Osipitan & Co. was appointed on no-cure basis to ensure recovery.


"The firm commenced filing of appropriate court processes at the Tax Appeal Tribunal while the Commissioner for Insurance has intervened to seek out of court settlement."
Insurance companies embarked on recapitalisation from September 2005 to February 2007, following a directive from the government through the NAICOM that they must increase their shareholders fund to a minimum standard.
During the period, insurance companies engaged in general business increased their capital base to N3 billion, as against N200 million, while life companies increased theirs to N2 billion from N150 million and composite companies pushed theirs to N5 billion, while the reinsures shored up theirs to N10 billion.
NIA noted that it took the step to recover the overpayment because government gave tax waivers to banks and insurance companies, of which the insurance industry did not benefit from it.
The umbrella body of insurers said member companies were overcharged say the capital market authorities in stamp duties and other charges that followed the exercise, as necessary discounts allowed to their banking counterparts were not affected.